Oil and natural gas took a real hit throughout the majority of 2016, with prices reaching half decade lows and – as a result – a large number of companies filing for Chapter 11. The industry seems to be coming out of the other end of the tunnel right now, however, and things are picking up. Penn West’s latest buyer proves this fact.
In a just published Form 13, filed with the US Securities and Exchange Commission (SEC), Penn West Petroleum Ltd. (NYSE:PWE) reported that Ho Cheuk Fund has picked up 24,574,459 of common stock as of 2017-01-11.
The acquisition brings the aggregate amount owned by Ho Cheuk Fund to a total of 24,574,459 representing a 4.89% stake in the company.
For those not familiar with the company, Penn West Petroleum Ltd. (Penn West) is an exploration and production company. The Company operates in the segment of exploring for, developing and holding interests in oil and natural gas properties, and related production infrastructure in the Western Canada Sedimentary Basin directly and through investments in securities of subsidiaries holding such interests. Penn West owns the petroleum and natural gas assets or over 100% of the equity, directly or indirectly, of the entities that carry on the remainder of the oil and natural gas business of Penn West, except for an unincorporated joint arrangement (the Peace River Oil Partnership). Penn West’s subsidiaries hold approximately 55% interest in the Peace River Oil Partnership.
A glance at Penn West Petroleum Ltd. (NYSE:PWE)’s key stats reveals a current market capitalization of 923.88 million based on 502.76 million shares outstanding and a price at last close of $1.92 per share.
Looking at insider activity, there are a few transactions worth noting.
On the sell side, the most recent transaction saw Ho unload 1,190,600 shares at a sale price of $1.80. This brings their total holding to 32,764,533.
It’s possible to gauge a company’s potential by tracking the activity of its major holders, as well as checking in on insider activity such as those transactions listed above. We’ll be keeping an eye on Penn West Petroleum Ltd. (NYSE:PWE) as things move forward to see if its progress aligns with these transactions.
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